Simple Interest

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What is Simple Interest?

Back

Simple Interest is the interest calculated on the principal amount only, without compounding. It is calculated using the formula: I = P * R * T.

Tags

CCSS.7.RP.A.3

Front

What does P stand for in the simple interest formula?

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P stands for Principal, which is the initial amount of money borrowed or invested.

Tags

CCSS.7.RP.A.3

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What does R stand for in the simple interest formula?

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R stands for the Rate of interest, expressed as a percentage.

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What does T stand for in the simple interest formula?

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T stands for Time, which is the duration for which the money is borrowed or invested, usually expressed in years.

Tags

CCSS.8.EE.C.7B

Front

What is the formula for calculating Simple Interest?

Back

I = P * R * T.

Tags

CCSS.7.RP.A.3

Front

If the principal amount is $1000, the interest rate is 8%, and the time period is 2 years, what is the simple interest?

Back

$160.

Tags

CCSS.7.RP.A.3

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If the principal amount is $800, the interest rate is 4%, and the time period is 5 years, what is the total amount to be repaid?

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$800 + $160 = $960.

Tags

CCSS.7.RP.A.3

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If the principal amount is $3000, the interest rate is 5%, and the time period is 4 years, what is the total amount to be repaid?

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$3000 + $600 = $3600.

Tags

CCSS.7.RP.A.3

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How do you calculate the total amount to be repaid in a simple interest loan?

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Total Amount = Principal + Simple Interest.

Tags

CCSS.7.RP.A.3

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What is the simple interest on a loan of $500 at a rate of 10% for 3 years?

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$150.

Tags

CCSS.7.RP.A.3